Vw Group plans to increase production 60 percent by 2018 in China

Article by Christian A., on March 15, 2013

Volkswagen Group is planning to raise production in China by 60% by the year 2018 based on its 2012 earnings increased by over 40%. From the current capacity in China of around 2.5 million units, VW Group wants to produce 4 million vehicles a year by 2018. CEO Martin Winterkorn said that a new plant in China that gets the approval of the supervisory board will roll out up to 300,000 vehicles each year and will begin operations in early 2016.

Winterkorn gave a speech at the automaker's annual press conference where he said that within the next several years, it will construct at least 10 more plants, of which seven will be located in China. VW’s strategy for China will mean raising the number of Volkswagen's car factories to 19.

VW also plans to offer a "true budget car” in China in a matter of years. It will be priced at 6,000 to 7,000 euros, equivalent to about $7,757 to $9,050. VW expects that by expanding in the U.S. and in China and by recording gains from Audi, it will be able to offset the weakening of demand in Europe. The VW Group is hoping to achieve sales of 1 million units in the U.S. by 2018.

These include VW-brand sales of 800,000 and Audi’s annual volume of 200,000 units. Winterkorn reaffirmed that VW is developing a large SUV to widen the Volkswagen brand's range of offerings for the U.S. market.

The concept form of this model was seen as the CrossBlue last January at the Detroit auto show. It will be using the new modular design toolkit that was launched on the seventh-generation Volkswagen Golf. Winterkorn said that there’s no confirmation yet that it will enter production. However, it will continue to pursue its renewed commitment to the U.S. that has now started to “bear fruit.”

If you liked the article, share on:

Topics: vw, china

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019